the handling and storage of mails. Despite the rapid increase in traffic, no new buildings, Branch or Sub-Offices, were com- menced or completed during the year. An old Kowloon-Canton Railway store house was, however, allocated to this Department to relieve the impossible situation existing at Kowloon, which was brought to notice in the Report for 1953/54. The store house was converted into a delivery and sorting office in time to meet the Christmas 1954 pressure. As a result it was possible to convert the antiquated public counter at the Kowloon Central Post Office into a modern one of much greater length. This enabled the congestion, which previously existed, to be considerably eased. These alterations at Kowloon elicited many favourable comments from both the public and the staff, but the general situation at Kowloon is far from satisfactory, and it is hoped that the erection of a modern Post Office there, capable amongst other things of handling air, train, and sea mail will be possible in the near future.

94. Lack of Branch and Sub-Offices continues to limit the decentralization which is necessary for more efficient deliveries and relief of the pressure on the Victoria and Kowloon Central Post Offices. Improved facilities for the New Territories also cannot be given until such time as the offices planned for that area have been erected.

We are very appreciative, however, of the assistance given to the Department by the Public Works Department during the year.

95. Exhibition Post Office. For the convenience of over- seas visitors to the Twelfth Exhibition of Hong Kong Products, a temporary Post Office was installed for the duration of the Exhibition (16th of December, 1954, to the 12th of January, 1955). This was the first time that postal facilities were provided at the Exhibition. The office was given the name of the Exhibition. Post Office, Hong Kong, and was well used both by the exhibitors and the public, a total of 17,605 mails items being posted.

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